A business can develop by organic growth or inorganic growth. Organic growth is when a company increases the turnover of its existing business. Inorganic growth describes how a business grows by joining one or more companies together. This can be done by two companies joining by agreement or buying at least 51% of another company’s shares. Furthermore, integration can happen in two ways: horizontal integration, where two joining firms at the same stage of production, and vertical integration, where the production stages differ.
The main benefit of horizontal integration is the elimination of competition from other firms due to the integration of assets competitors have been using within the same market sector. Horizontal integration can also …show more content…
The opportunity for growth was the better position resulting from the new structure that allowed the business to improve its sales and profits.
European Union markets for horizontal growth
Several aspects of European Union markets encouraged horizontal growth of the Group, specifically the use of English as a common language within the European Union; the cultural similarities in terms of buying habits and others between the areas where Berendsen operates and the UK; the currencies used in the countries where Berensden operates, which are either the Euro or such linked to the Euro.
European Union markets for organic growth
Much of the growth of Sunlight and Berendsen involved organic growth due to their position of market leaders, their ability to learn from each other, and their incentive to share good ideas and best practice. The major aspect of the European Union markets that encouraged the Group to engage in organic growth was the fast speed at which European Union markets develop and the demand for opening up new sites and more textile services, the growth in key sectors observed in countries that had joined the European Union recently, and finally, the new European Union legislation, which also provided an opportunity for the Group to …show more content…
Expansion into New Areas of the Globe
If Davis Service Group were to expand into new areas of the globe, I might recommend India due to the low costs related to doing business once a company has initiated its operations. However, there are both attractive and less attractive aspects of business expansion in India and if a company is considering doing so, it needs to pay much attention to all of them.
Encouraging Factors
According to Startup Overseas, India's economy is one of the fastest expanding in the world and with its rapidly expanding consumer class presents a gold mine of business opportunities in a very wide range of sectors (n.d.). The same source states that economy forecasts see India as the fifth largest consumer market in 2025. In addition, today’s Indian middle class counts 300 million people, comparable in size to the entire European Union market (Startup Overseas,
The main benefit of horizontal integration is the elimination of competition from other firms due to the integration of assets competitors have been using within the same market sector. Horizontal integration can also …show more content…
The opportunity for growth was the better position resulting from the new structure that allowed the business to improve its sales and profits.
European Union markets for horizontal growth
Several aspects of European Union markets encouraged horizontal growth of the Group, specifically the use of English as a common language within the European Union; the cultural similarities in terms of buying habits and others between the areas where Berendsen operates and the UK; the currencies used in the countries where Berensden operates, which are either the Euro or such linked to the Euro.
European Union markets for organic growth
Much of the growth of Sunlight and Berendsen involved organic growth due to their position of market leaders, their ability to learn from each other, and their incentive to share good ideas and best practice. The major aspect of the European Union markets that encouraged the Group to engage in organic growth was the fast speed at which European Union markets develop and the demand for opening up new sites and more textile services, the growth in key sectors observed in countries that had joined the European Union recently, and finally, the new European Union legislation, which also provided an opportunity for the Group to …show more content…
Expansion into New Areas of the Globe
If Davis Service Group were to expand into new areas of the globe, I might recommend India due to the low costs related to doing business once a company has initiated its operations. However, there are both attractive and less attractive aspects of business expansion in India and if a company is considering doing so, it needs to pay much attention to all of them.
Encouraging Factors
According to Startup Overseas, India's economy is one of the fastest expanding in the world and with its rapidly expanding consumer class presents a gold mine of business opportunities in a very wide range of sectors (n.d.). The same source states that economy forecasts see India as the fifth largest consumer market in 2025. In addition, today’s Indian middle class counts 300 million people, comparable in size to the entire European Union market (Startup Overseas,